Sunday, December 02, 2007

Venezuelan Referendum

I watched CNN and BBC this morning and I was greeted re the news that Vladimir Putin is winning in Russia's parliamentary elections. I am not surprised.

However, another news that may affect today's market opening in Asia, particularly oil prices and the shares of Santander bank is the Venezuelan Referendum. It is currently being undertaken to:

1. Abolish term limits for President opening the way for Chavez to stay on indefinitely past January 2013, when he is due to step down.He has said he would govern for life if the people backed him.

2. Changes to allow the government to take over the central bank, expropriate private property in the name of "economic socialism," and gag the media in times of emergency are also being proposed.

Not only that, he also threatened Saturday to halt oil exports if he sees US meddling in, or after, the hotly contested weekend referendum!

Another is, he has promised to nationalize Spanish banks in Venezuela if Spain's King Juan Carlos does not apologize for telling him to "shut up" at a recent summit.

Implications of this is, expect a much higher oil prices on Monday. If you are into stocks, think about the shares of the Spanish Banks.


There....who says? we are in a lot of trouble due to the Manila Pen incident? Wait until GMA maid a similar referendum.. at least for the the lifting of the President term limits! Hahahaha.